LOUISVILLE, KENTUCKY

THE KLINK GROUP of Marcus & Millichap OFFERING MEMORANDUM FAMOUS DAVE’S CONFIDENTIALITY DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Activity ID: ZAA0260529

Presented By: TABLE OF CONTENTS THE KLINK GROUP of Marcus & Millichap OFFERING SUMMARY Jordan Klink INDIANAPOLIS OFFICE First Vice President of Investments LOCATION OVERVIEW [email protected] P (317) 218-5316 MARKET DEMOGRAPHICS Ben Sullivan INDIANAPOLIS OFFICE Investment Associate [email protected] P (317) 218-5333 OFFERING SUMMARY THE OPPORTUNITY

The Klink Group of Marcus Millichap is pleased to present for sale a triple net-leased Famous Dave’s restaurant in Louisville, Kentucky. Famous Dave’s is subject to a 10-year lease with PROPERTY SUMMARY more than nine years of primary term remaining and two, five-year options, with five percent Address 8605 Citadel Way rental increases at each option. The lease is backed by Famous Five Dining Inc., a five-unit Louisville, KY 40220 Famous Dave’s franchisee with more than 18 years of restaurant management experience. Offering Price: $2,600,890

The property is situated on 1.42 acres just off of Hurstbourne Parkway, one of the busiest retail corridors in the Louisville Metropolitan Statistical Area. Famous Dave’s benefits from Cap Rate: 6.75% daily traffic counts of 55,993 vehicles-per-day and an affluent five-mile population of 229,626 Year Built: 2001 people earning an average of $84,395 annually per household. The property’s submarket Size (Square Feet): 5,436 includes 5,800,000 square feet of retail inventory that includes retailers such as Target, Kroger, Home Depot, AMC, LA Fitness, Chick-fil-A, McDonald’s, Walgreens, Taco Bell, Panera Lot Size: 1.42 Acres Bread, and many more, in the immediate area. Ownership Interest: Fee Simple

INVESTMENT HIGHLIGHTS Zoning: Commercial • Strong Lease Longevity with Zero Landlord Responsibilities: Absolute NNN Lease with More Than Nine Years Remaining • Strong Operations History: Famous Dave’s has been operating at this subject site for 15+ years • Excellent Location: Positioned Just Off One of the Busiest and Dense Retail Submarkets in the Louisville MSA with Daily Traffic Counts of 55,993 Vehicles Per Day • Affluent and Populous Five-Mile Demographics: Average Household Income of $84,395 and Population of 229,626 Within Five-Mile Radius of Property • Publicly Traded National Tenant: Since Its Inception in 1994, Famous Dave’s Has Grown to 134 locations in 33 states • Lease Backed by Strong & Experienced Franchisee Operator: Famous Five Dining Inc. is a Five Unit Franchisee of Famous Dave’s with More Than 18 Years of experience THE OPPORTUNITY

FINANCIAL SUMMARY LEASE SUMMARY

Offering Price: $2,600,890 Property Subtype: Net Leased Restaurant

Terms: New Acquisition Financing Tenant: Famous Five Dining, Inc.

Loan-toValue: 75% Rent Increases: 5% Every Five Years

Down Payment (25%): $650,222 Lease Type: Absolute NNN

Interest Rate: 4.25% Lease Start Date: 04/01/2019

Amortization: 25 Years Lease End Date: 03/31/2029

Annual Debt Service: $126,810 Term Remaining on Lease: 9.5 Years

INCOME Renewal Options: Two, Five-Year Periods

Current Net Operating Income: $175,560 Right of First Refusal/Offer: No

Current Cap Rate: 6.75%

Cash-on-Cash Return: 7.50% RENT SCHEDULE

Year Annual Rent Cap Rate

Years 1-10 $175,560 6.75%

Option 1 $184,344 7.09%

Option 2 $193,560 7.44% TENANT OVERVIEW - CORPORATE

Famous Dave’s of America, Incorporated (Inc.) was incorporated in Minnesota on March 14, 1994. The Company develops, own, operates and franchises restaurants under the name “Famous Dave’s.” Famous Dave’s restaurants offer full table service, feature wood-smoked and off-the-grill entrée favorites that fit into the broadly defined barbeque category.

Famous Dave’s differentiates themselves by providing high-quality food in distinctive and comfortable environments with signature décor and signage. As of October 1, 2017, there were 154 Famous Dave’s restaurants operating in 32 states, the Commonwealth of Puerto Rico, Canada, and United Arab Emirates, including 25 Company-owned restaurants and 129 franchise-operated restaurants. An additional 61 franchise-operated restaurants were committed to be developed through signed area development agreements as of October 1, 2017. The prototypical design includes the following elements: a designated bar, a signature exterior smokestack, a separate entrance for their To Go business and a patio (where available). Famous Dave’s is known for their high quality food, focus on guest experience, and distinctive environment. TENANT OVERVIEW - FRANCHISEE

Famous Five Dining, Inc., a two husband and wife team that leads the company, have the rights to franchise “Famous Dave’s Legendary Pit Bar-B-Que” throughout Central & East Tennessee and parts of North Georgia. Currently, it operates Famous Dave’s restaurants in Hermitage, Chattanooga, Knoxville and Smyrna, Tennessee.

Owners Mike and Tamara Lister, and Doug and Laurel Renegar have over 90 years of combined experience in the industry. Mike formerly served Famous Dave’s of America, Inc. as its Senior Vice President of Operations, helping grow the company from 4 to 50 restaurants. Doug most recently served as the Franchise Business Coach of Kentucky Fried Chicken, consulting with 35 franchise companies in the Southeast. Previously he was a Director of Operations for KFC. Together, Doug and Mike handle operations and future growth for the company. Laurel Renegar, who serves as Chief Financial Officer, has her master’s degree in finance and honed her talents in the health care field before turning to restaurants. Tamara Lister handles both marketing and human resources. She worked in the television industry as a news anchor and reporter before plying her skills in the Hospitality Industry.

Famous Five Dining has six times been awarded the Enduring Flame Award, which celebrates our commitment to culture and employee development. The company has also received Famous Dave’s first Community Service Award in 2007, and was again named for that honor in 2008 & 2009. In 2010, 2011 & 2012 it earned the Famous Neighbor Award for FFD's contribution to and support of the Make-A-Wish Foundation and other organizations that make our communities stronger. Individually, the Hermitage restaurant was selected Rookie Restaurant of the Year and Franchise Restaurant of the Year by Famous Dave’s of America in 2002. In 2003, it was named Restaurant of the Year among all restaurants in the system. The Rookie honor went to the Chattanooga restaurant in 2003. And on top of that, Famous Five Dining was named Famous Dave’s Franchisee of the Year for 2003, 2004 and again in 2009.

LOCATION OVERVIEW LOCATION OVERVIEW

LOUISVILLE’S CONVENIENT TRANSPORTATION INFRASTRUCTURE

Louisville’s road, rail and air transportation offer convenient travel options both regionally and internationally. The city has an inner and outer interstate beltway, I-264 and I-265, providing road transportation around Louisville. The city is also served by I-65 and I-64, providing transportation north to south and east to west. The I-65, I-64 and I-71 all intersect at Spaghetti Junction, which was part of the Ohio River Project. The project’s scope included building the Abraham Lincoln Bridge, Lewis & Clark Bridge and renovating Spaghetti Junction and John F. Kennedy Memorial Bridge. Louisville’s freeway system puts the city within a one-day drive of about 50% of the United States

The Louisville Airport is a logistics hub for the city, providing 28 nonstop flights serving 3.4 million passengers in 2017. During that same year, the airport ranked third in North America and seventh in the world for total air freight cargo, handling 5.7 billion pounds. Louisville’s public transportation is provided by Louisville’s Transit Authority of River City (TARC), serving Louisville, the largest city in Kentucky, sits along the Ohio River in the northern 45,000 passenger a day. Two public inland ports operate in the region of the state, on the Indiana border. The city is the seat of Jefferson metropolitan area with 48 private terminals on the Ohio River, offering County and is the 29th most-populous city in the United States. Louisville has convenient access to the U.S. inland waterway system from the St. recently seen steady growth, with its population increasing from 1,241,373 to Lawrence Seaway to the Gulf of Mexico. The area is also served by three 1,301,790 between 2010 and 2018. major railroad companies, Canadian Pacific, CSX, and Norfolk Southern (NS). The CSX and NS railroads provide direct rail services to all markets east of the Mississippi River, with connecting service to the West Coast. LOCAL ECONOMY DRIVEN BY HEALTHCARE, DISTRIBUTION/ LOGISTICS AND MANUFACTURING LOUISVILLE’S LARGEST ATTRACTIONS AND ENTERTAINMENT DESTINATIONS Four of Louisville’s largest employers are in the healthcare sector and include KentuckyOne Health and its subsidiary Jewish Hospital & St. Mary’s Health Care; Louisville has several world-renowned attractions including sports arenas, Humana; and Norton Healthcare, totaling approximately 36,247 employees. museums and attractions. Louisville is home to the Kentucky Derby, the The United Parcel Service and Amazon have large distribution and logistical world’s most popular horse race, known as “The Most Exciting Two presences in Louisville, accounting for 27,733 employees. Ford Motor Company Minutes in Sports.” The derby occurs every first weekend in May at and General Electric Appliances have manufacturing plants in Louisville that Churchill Downs. The city’s notable museums include the Frazier History total 18,600 employees. Ford’s assembly plant has 3,154,173 square feet Museum, the Louisville Slugger Museum & Factory, the Kentucky Science spanning 180 acres. General Electric’s Appliance Park is a 2.5 million-square Center and the Muhammad Ali Center. Louisville’s entertainment hub is foot corporate campus spanning 1,000 acres. located at Fourth Street Live!, which is within walking distance of historic downtown hotels, the Kentucky International Convention Center, Waterfront Park, the KFC YUM Center, and Slugger Field. Louisville has also earned the moniker of the bourbon capital of the world as home to more than a dozen craft and heritage distillers and distillery head - quarters. LOCATION OVERVIEW

Kentucky is known for its bourbon, horse races and the music scene, but even a short visit to Louisville makes it clear that the state's greatness is not necessarily confined to whiskey and honky- tonk country music.

Downtown Louisville has an incredible art scene and is booming with independent businesses and charming shops. There is much to discover: from an art gallery and hotel hybrid to must-try restaurants and a museum dedicated to America’s sport, baseball, one of the greatest music festivals in the country. So, whether you're a local looking for a fun night out or planning a trip to discover all of the area's cultural gems, you'll want to consult our list of very fun things to do in Louisville, KY while in town. Downtown Louisville, Kentucky

Destinations

Point of Interest Distance Travel Time

Louisville International 11.5 miles 15 min. Airport

Downtown Louisville 11.8 miles 21 min.

Cincinnati, Ohio 109 miles 2 hrs. 56 min.

Indianapolis, Indiana 124 miles 2 hrs.

St. Louis, Missouri 272 miles 4 hrs.

Fourth Street Live, Louisville, Kentucky LOCATION OVERVIEW

Burger King

Subject Property MARKET DEMOGRAPHICS DEMOGRAPHICS

1 Miles 3 Miles 5 Miles POPULATION 2023 Projection 12,323 93,349 237,492 2018 Estimate 11,633 90,969 229,626 2010 Census 11,298 88,219 221,058 2000 Census 11,762 84,792 206,461

INCOME Average $77,558 $81,315 $84,395 Median $62,302 $62,155 $62,999 Per Capita $33,395 $35,757 $36,614

HOUSEHOLDS 2023 Projection 5,323 41,238 103,407 2018 Estimate 4,976 39,868 99,246 2010 Census 4,846 38,748 95,867 2000 Census 4,853 36,414 88,072

HOUSING 2018 $188,750 $186,330 $195,779

EMPLOYMENT 2018 Daytime Population 11,148 102,250 265,686

2018 Unemployment 3.18% 3.14% 3.33%

2018 Median 23 23 23 Time Traveled

RACE & ETHNICITY White 72.55% 76.99% 77.06% Native American 0.05% 0.03% 0.03% African American 16.17% 13.80% 14.83% Asian/Pacific Islander 6.52% 3.87% 3.01% DEMOGRAPHICS

Population Race and Ethnicity The current year racial makeup of your selected area is as In 2018, the population in your selected geography is 90,969. follows: 76.99% White, 13.80% Black, 0.03% Native American The population has changed by 7.28% since 2000. It is and 3.87% Asian/Pacific Islander. Compare these to US averages estimated that the population in your area will be 93,349.00 which are: 70.20% White, 12.89% Black, 0.19% Native American five years from now, which represents a change of 2.62% and 5.59% Asian/Pacific Islander. People of Hispanic origin are from the current year. The current population is 48.07% counted independently of race. male and 51.93% female. The median age of the population in your area is 39.70, compare this to the US average which is People of Hispanic origin make up 6.20% of the current year 37.95. The population density in your area is 3,213.90 people population in your selected area. Compare this to the US per square mile. average of 18.01%.

Households Housing There are currently 39,868 households in your selected The median housing value in your area was $186,330 in 2018, geography. The number of households has changed by 9.49% compare this to the US average of $201,842. In 2000, there since 2000. It is estimated that the number of households in were 24,532 owner occupied housing units in your area and your area will be 41,238 five years from now, which there were 11,882 renter occupied housing units in your area. represents a change of 3.44% from the current year. The The median rent at the time was $545. average household size in your area is 2.27 persons.

Income Employment In 2018, the median household income for your selected In 2018, there are 73,719 employees in your selected area, this is geography is $62,155, compare this to the US average which also known as the daytime population. The 2000 Census revealed is currently $58,754. The median household income for your that 71.74% of employees are employed in white-collar area has changed by 24.76% since 2000. It is estimated that occupations in this geography, and 28.34% are employed in blue- the median household income in your area will be $71,490 collar occupations. In 2018, unemployment in this area is 3.14%. five years from now, which represents a change of 15.02% In 2000, the average time traveled to work was 23.00 minutes. from the current year.

The current year per capita income in your area is $35,757, compare this to the US average, which is $32,356. The current year average household income in your area is $81,315, compare this to the US average which is $84,609. LOUISVILLE, KENTUCKY

EXCLUSIVELY LISTED BY: JORDAN KLINK BEN SULLIVAN Indianapolis Office Indianapolis Office First Vice President of Investments Associate [email protected] [email protected] P (317) 218-5316 P (317) 218-5333

Colby Haugness Nicholas Weaver David Klink Jason Dean Richard Niewiadomski Broker of Record, Kentucky Indianapolis Office Indianapolis Office Indianapolis Office Indianapolis Office RE License #: 242197 Senior Associate Associate Director of Finance Financial Analyst 513-878-7700

THE KLINK GROUP of Marcus & Millichap OFFERING MEMORANDUM